Prospect Resources’ (ASX:PSC) goal of developing its Arcadia lithium project in Zimbabwe is a step closer, with the explorer appointing the African Export-Import Bank (Afreximbank) to arrange and manage a $US143 million project finance debt facility.
Notably, Afreximbank – one of Africa’s largest development banks with significant experience financing projects in Zimbabwe – is proposing to fund and hold $US75m of the facility.
Further detailed due diligence will be carried out along with negotiation of the final facility arrangements.
“The company’s Arcadia lithium project is expected to be the first African lithium mine financed by Afreximbank and the first African lithium mine to attract debt finance,” Prospect executive chairman Hugh Warner said.
Prospect’s 87 per cent owned Arcadia project is fully permitted to produce lithium for the chemical as well as glass and ceramics markets.
It has an ore reserve of 37.4 million tonnes grading 1.22 per cent lithium oxide and 121 parts per million tantalum, sufficient for a mine life of 15.5 years.
In its updated definitive feasibility study, the company noted that the project would deliver average annual earnings before interest, taxes, depreciation and amortisation of $US168m for the first five years.
Capex has been estimated at $US162m with payback expected in 18 months.
READ: Patience … lithium prices could be in the toilet for a while
In other ASX tech metals news:
Core Lithium (ASX:CXO) has acquired a new lithium project adjacent to its Anningie and Barrow Creek project in the Northern Territory. The Walanbanba project contains numerous pegmatites with previous sampling by Todd River Resources returning grades of up to 4.63 per cent lithium oxide.
Talga Resources’ (ASX:TLG) graphene additive, Talcoat, has been mixed on site with a two part commercial primer coating system and applied to a sizeable area of a second large container ship during dry docking. This is a significant commercial development, the company says, as graphene based products commonly require factory conditions or liquid dispersions to work.
Arafura Resources (ASX:ARU) has received initial assay results with a top hit of 43.62m at 6 per cent total rare earth oxides and 28 per cent phosphorus pentoxide from infill drilling at its Nolans neodymium-praseodymium project in the Northern Territory. The results are in line with expectations, Arafura says.